Urban Outfitters Is Plagued By 3 Major Problems

The retailed reported a decline of 12% at Urban Outfitters stores
in the first quarter. Sales also fell last year.

The company identified several major problems in an earnings call
with investors today.

Fashion misses. Urban Outfitters needs to sell
hip, trendy apparel in order to bring in customers. But Urban
Outfitters' latest offerings have been more obscure than hip.
Take this
bizarre bear coat from December, which retailed for $200.
Urban'snew
fitness brand, created in
response to the popularity of brands like Lululemon, was
criticized for being overpriced and
skimpy. Urban
Outfitters

Off-pitch marketing.Urban Outfitters markets to
teen customers. Unfortunately, those customers are
price-conscious and would rather shop at fast-fashion brands like
Forever 21 and H&M, writes Miriam Gottfried
at The Wall Street Journal.
In order to turn business around, Urban Outfitters will have to
resonate with older customers who are in college and beyond.
Urban Outfitters CEO Richard Hayne said that the brand plans to
improve store displays and advertisements.

Creative execution. Urban Outfitters is known
for pushing the envelope. This year, however, the brand missed
the mark. The brand
was forced to pull a "Depression" t-shirt after customers
expressed outrage. Urban Outfitters also pulled a shirt depicting
"drunk" Jesus. These incidents eroded consumer perception in
Urban's brand. Twitter/@MintyFreshLou

Hayne said that the brand is working to fix fashion
assortments and get customers back in stores.

Last month, Urban Outfitters appointed Trish Donnelly
as president of its North American brand.